| The Buzz Surrounding Urban Tea, Inc. (NASDAQ: MYT)

The Buzz Surrounding Urban Tea, Inc. (NASDAQ: MYT)

About:

Urban Tea, Inc. is a specialty tea product distributer and retailer headquartered in Changsha City, Hunan Province, China. Through its wholly owned subsidiary,
Mingyuntang (Shanghai) Tea Limited which controls  Hunan Ming Yun Tang Brand Management Co., Ltd. and Hunan 39 Pu Tea Co., Ltd., the Company currently market a wide range of trendy tea drinks, light meals, and pastries targeting China’s new urban generation in Hunan province.

Urban Tea, Inc. recently announced the acquisition of 80% equity interest in Guokui Management Inc.
Guokui is incorporated under the laws of New York State and has been operating CROP CIRCLE,
a casual street food restaurant in New York City, since August 2020.

Our Behind the Buzz Show Featuring
Urban Tea, Inc.:

Our Buzz on the Street Show Featuring
Urban Tea, Inc.:

Investor Recap:

Managed Stores

  • Two main types: Flagship stores (80-150
    square meters) and General stores (40-80
    square meters)
  • Main products: tea beverages, pastries, light
    meals and other products
  • General stores: tea beverages account for 30%
    of sales, pasties account for 60% of sales, and
    other products account for 10% of sales
  • Flagship stores: tea beverages account for
    20% of sales, light meals account for 20% of
    sales, pasties account for 50% of sales, and
    other products account for 10% of sales

JV/Franchised Stores

  • Regulatory Approval abtained under the brand
    “Buoyance Manor” throughout China
  • Main products: tea beverages, pastries, light
    meals and other products
  • Buoyance Manor store types: Flagship stores and Image stores

Brands

The first new format of healthy baking + new Chinese fashion tea

New Chinese fashion tea + light food products new format

Recent Developments

Sept. 23, 2020 - Urban Tea Announces Entry into Share Purchase Agreement to Acquire 80% Equity Interests in Guokui Management Inc.

Urban Tea Inc. (the “Company,” “we” or “Urban Tea“) (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, announced today that it has entered into a share purchase agreement (the “Agreement”), pursuant to which the Company agreed to pay $400,000 in cash to acquire 80% of the equity interest in Guokui Management Inc. (“Guokui”). Guokui is incorporated under the laws of New York State and has been operating CROP CIRCLE, a casual street food restaurant in New York City, since August 2020. The Agreement also includes details of how the two parties may collaborate in the future.

Upon closing of the transaction contemplated by the Agreement, MYT will own the registered trademark of “CROP CIRCLE” in the United States and operate the Crop Circle restaurant, which features guokui, an oval shaped baked flatbread with various filling selections, a popular street snack originating from northern China’s Shaanxi Province. CROP CIRCLE also provides other meals combining classic and modern styles. MYT currently owns the trademark “MENO” and operates MENO, a modern tea and coffee shop with a small curated food menu. The ownership of these two restaurants marks the implementation of MYT’s initial brand strategy in the United States. Going forward, the Company plans to deepen its roots in the US market based on the restaurants’ operating performances.

Ms. Kan Lu, CFO of Urban Tea, commented: “The signing of the Agreement enables the Company to better navigate the casual food and drink market in NYC. Through building brand awareness and launching new restaurants, the partnership with Guokui shareholders will take our expansion plan on an exciting journey. We remain committed to our common core values of providing culturally inspired food that is loved by customers in America. With Guokui’s management team, we look forward to opening more restaurants and bringing traditional Chinese cuisine to more guests across the U.S.”

For Full Release: https://www.prnewswire.com/news-releases/urban-tea-announces-entry-into-share-purchase-agreement-to-acquire-80-equity-interests-in-guokui-management-inc-301136277.html

Aug. 27, 2020 - Urban Tea Announces Entry into Letter of Intent to Acquire Controlling Stake of A Brand Management Company and A Supply Chain Management Company

Urban Tea Inc. (the “Company,” “we” or “Urban Tea“) (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, announced today that the Company and its wholly-owned subsidiary Hunan Ming Yun Tang Brand Management Co., Ltd. (“Ming Yun Tang“) entered into a  non-binding letter of intent (“LOI“) with Chuangyeying Brand Management Co., Ltd. (“CYY“), Store Master Food Trading Co., Ltd. (“Store Master“) and the shareholders of CYY and Store Master.

CYY has franchise permit and owns multiple registered trademarks in China. It currently manages over 300 tea beverages franchisees. Store Master specializes in supply chain management, product research and development, and optimizing long-term and stable supply chains. Store Master also owns a scalable warehouse with an advanced logistics management system. CYY and Store Master are commonly owned by five individuals.

The LOI contemplates that the parties would enter into certain definitive agreement pursuant to which Ming Yun Tang will acquire 51% of each of the two companies’ equity with cash and restricted shares of Urban Tea. If the acquisitions are completed, the collaboration will consolidates the resources and expertise of Ming Yun Tang, CYY, and Store Master in brand management, sales networks, and supply chain technologies to better serve our customers and expand our business. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate.

Ms. Kan Lu, Chief Financial Officer of Urban Tea, commented, “This LOI indicates management’s strong determination in the execution of our domestic expansion plan. Moving forward, we will work with all parties to negotiate and finalize the definitive acquisition agreements. If definitive agreements are executed as planned, Ming Yun Tang will have control over more than 300 franchisees along with a more complete supply chain system, stronger R&D capability, and more expansive marketing channels in China upon completion of the acquisitions.”

Mr. Chen Min, Founder of CYY, said, “I am delighted to enter into this LOI with Hunan Ming Yun Tang. The planned acquisition will leverage our combined expertise and resources to accelerate our business development to the next level. “

Completion of the acquisition is subject to due diligence investigations by Ming Yun Tang, the negotiation and execution of definitive agreement, satisfaction of the conditions negotiated therein including the approval of the Company’s Board of Directors, and the satisfaction of other customary closing conditions. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Further, readers are cautioned that those portions of the LOI that describe the proposed transaction, including the consideration to be issued therein, are non-binding.

 

For Full Release: https://www.prnewswire.com/news-releases/urban-tea-announces-entry-into-letter-of-intent-to-acquire-controlling-stake-of-a-brand-management-company-and-a-supply-chain-management-company-301119670.html

July 31, 2020 -Urban Tea Announces Grand Opening of First Overseas Tea House in New York City on August 1, 2020

Urban Tea Inc. (the “Company,” “we” or “Urban Tea“) (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, today announced the date of the grand opening of MENO, a specialty tea and coffee house, in West Village near Washington Square Park in Manhattan, New York City. The grand opening will take place on Saturday August 1st, 2020. MENO’s opening will mark the arrival of the Company’s first overseas tea house, bringing New Yorkers a variety of specialty teas, coffees, juices, other drinks and light snacks/meals.

“We are excited to celebrate the opening of our first overseas tea house MENO, as part of our international expansion plan,” said Long Yi, Chief Executive Officer of Urban Tea. “In the fast-paced New York City, MENO aims to provide a sanctuary for guests to take a rest, slow down, and truly appreciate the simple pleasures found in a cup of tea or coffee.”

MENO is designed as a quaint and stylish space, decorated with modern and traditional Asian styles. It is bathed in white and includes light wood-style seating and small tables. MENO has a 15-seat capacity and currently planned to be open from Tuesday to Sunday from 9 a.m. to 8 p.m. EST. Takeout and delivery options will be available via delivery platforms such as GrubHub, UberEats, HungryPanda and ChowBus.

All the items found on the menu are inspired by the tea and coffee products of our “Buoyance Manor” stores in China, customized to fit the New Yorkers’ palate and aesthetic. The menu offers Coffee Meets Juice, a one of a kind, curious and delicious mixture of different freshly squeezed juices and coffee; Dark teas, MENO’s absolute specialty, are one of the most ancient types of teas from China and are rarely found in New York City. The teas, which can be served hot or cold, have undergone microbial fermentation for up to eight years; Fresh Milk Teas, served hot or cold and made with organic whole milk, come in three varieties including peach-flavored oolong tea, honey-flavored black tea, and Jasmine-flavored green tea; Cheese Foam Fruit Teas are served cold and made with fruit slushies and fine green tea, topped with a frothy layer of milk and cream cheese, and sprinkled with salt for a sweet and savory sip; Coffees are also spotlighted, using premier blends from Counter Culture Coffee with options such as Espressos, Americanos, Lattes, Cappuccinos, Iced Americanos and Iced Lattes.

Additionally, a small curated food menu is also provided as the perfect complement to the beverages with savory choices like Smoked Chicken Breast Salads and Beef Bologna Sandwiches.

For Full Release: https://www.prnewswire.com/news-releases/urban-tea-announces-grand-opening-of-first-overseas-tea-house-in-new-york-city-on-august-1-2020-301103726.html

June 8, 2020 - Urban Tea Receives Regulatory Approval to Seek Franchisees for Business Expansion Throughout China

Urban Tea Inc. (the “Company”, “we” or “Urban Tea“) (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, today announced that we received the approval from the Commercial Franchise Enterprise Administration on May 20th, 2020 and was approved to seek franchisees for growth opportunities throughout China. Hunan Ming Yun Tang Brand Management Co., Ltd. (“Hunan MYT”), the Company’s variable interest entity, has officially obtained the “Business Franchise Enterprise” license issued by the Hunan Provincial Department of Commerce. The license enables the Company to grow its business through franchising with its brand “Buoyance Manor,” in addition to operating corporate stores within China.

Management believes that due to Hunan MYT’s efficient brand operation, management and supply chain system, coupled with newly obtained franchise qualifications, we are well positioned to attract potential franchisees across the country. The Buoyance Manor franchising opportunity represents an exceptional opportunity in the tea retailer industry. In addition to providing franchisees with brand publicity, store design, staff training, and standard administration services, the centralized kitchen will also provide finished products to franchisees. Given the extensive collaboration with major raw material and equipment suppliers, franchisees will always be offered supplies of the best quality at a competitive price.

Mr. Long Yi, Chief Executive Officer of Urban Tea, commented: “We are excited about expanding our brand and growing the business via franchising. This is a strong indicator that the Company has ushered in a new development opportunity. There is tremendous growth potential for franchise businesses, and the strength of our brand and management; we look forward to achieving long-term, successful partnerships with our franchisees.”

For Full Release: https://www.prnewswire.com/news-releases/urban-tea-receives-regulatory-approval-to-seek-franchisees-for-business-expansion-throughout-china-301071768.html

June 8, 2020 - Urban Tea Receives Regulatory Approval to Seek Franchisees for Business Expansion Throughout China

Urban Tea Inc. (the “Company”, “we” or “Urban Tea“) (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, today announced that we received the approval from the Commercial Franchise Enterprise Administration on May 20th, 2020 and was approved to seek franchisees for growth opportunities throughout China. Hunan Ming Yun Tang Brand Management Co., Ltd. (“Hunan MYT”), the Company’s variable interest entity, has officially obtained the “Business Franchise Enterprise” license issued by the Hunan Provincial Department of Commerce. The license enables the Company to grow its business through franchising with its brand “Buoyance Manor,” in addition to operating corporate stores within China.

Management believes that due to Hunan MYT’s efficient brand operation, management and supply chain system, coupled with newly obtained franchise qualifications, we are well positioned to attract potential franchisees across the country. The Buoyance Manor franchising opportunity represents an exceptional opportunity in the tea retailer industry. In addition to providing franchisees with brand publicity, store design, staff training, and standard administration services, the centralized kitchen will also provide finished products to franchisees. Given the extensive collaboration with major raw material and equipment suppliers, franchisees will always be offered supplies of the best quality at a competitive price.

Mr. Long Yi, Chief Executive Officer of Urban Tea, commented: “We are excited about expanding our brand and growing the business via franchising. This is a strong indicator that the Company has ushered in a new development opportunity. There is tremendous growth potential for franchise businesses, and the strength of our brand and management; we look forward to achieving long-term, successful partnerships with our franchisees.”

For Full Release: https://www.prnewswire.com/news-releases/urban-tea-receives-regulatory-approval-to-seek-franchisees-for-business-expansion-throughout-china-301071768.html

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